Photo: James Bombales
As Canadian Millennials finally leave the nest, more and more Boomers are considering selling their family homes. The only problem? They can’t afford to downsize in their existing community.
According to the Royal LePage Boomer Trends Survey, released today, 56 per cent of Boomers consider their local housing market unaffordable for retirement.
“There are a significant number of people who look around their neighbourhood at the price of a condo or a townhome and think ‘I can’t afford this,’” Royal LePage president Phil Soper tells Livabl.
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In Canada’s most expensive cities, that number climbs — 78 per cent of respondents in British Columbia and 63 per cent of respondents in Ontario say they aren’t planning to downsize for affordability reasons.
And in light of these concerns, 59 per cent of respondents said they would rather renovate their current residence than buy a new home.
Currently across Canada, 77 per cent of Boomers own a home, with 61 per cent living in a detached home, and only 21 per cent residing in condos.
“The boomers have been a relative non-factor in Canadian real estate for a number of years,” says Soper. “Now, with their children moving out, we may have reached a point where that’s about to change. But attachment to their communities and a lack of affordable options could change that.”
Soper says that many boomers will choose to age in place, keeping their coveted detached homes off the market. Those that do choose to downsize will likely consider condos.
“There are a significant number of boomers that aren’t going anywhere,” he shares. “But of those that do, I think we could see a slight bump in the condo market, as a surge of boomer buyers creates greater demand for the property type.”